Prima facie evidence of private vehicle use by managing directors

In contrast to wage tax, a hidden profit distribution without a logbook or similar measures is generally prima facie evidence that the shareholder-managing director also uses a company vehicle privately.

The unauthorized private use of a company vehicle by a shareholder-managing director is at least partly caused by the company relationship and therefore also leads to a hidden profit distribution. The Cologne Fiscal Court stated that, according to general life experience, there is prima facie evidence that a vehicle provided to the shareholder-managing director for business trips is actually also used for private trips.

This applies - irrespective of whether the managing director controls the GmbH - both in the absence of a contractual agreement on private use and in the case of a ban on private use expressly agreed in the managing director's employment contract and, in particular, if the shareholder managing director does not keep a logbook, no organizational measures are taken to exclude private use of the vehicle and the shareholder managing director has unrestricted access to the car. The tax court considers this prima facie evidence to be given even if the managing director has another company car expressly for private use and a private car at his disposal. However, this case law expressly refers only to the determination of a hidden profit distribution and not to the area of wage tax.